Former Labour Party presidential candidate, Peter Obi, has raised concerns over the Federal Government’s reported approval of ₦3.3 trillion to settle debts in Nigeria’s power sector, questioning the effectiveness of previous approvals and calling for greater transparency.
In a post shared on his official X (formerly Twitter) account on Tuesday, Obi urged Nigerians to carefully examine the development and assess the impact of previous interventions in the power sector.
“Let us reflect, sincerely and without sentiment,” Obi wrote.
According to him, the reported approval is not the first of its kind, noting that similar financial interventions had been announced in the past without visible improvements in electricity supply.
“In the past few days, the President has reportedly approved ₦3.3 trillion as a ‘full and final’ payment for debts in the power sector. Yet, this is not the first time such approvals have been made,” he stated.
Obi recalled that on May 17, 2024, a similar sum was approved for the same purpose, followed by another major intervention months later.
“On May 17, 2024, ₦3.3 trillion was approved for the same purpose. On July 25, 2024, another ₦4 trillion bond was approved to settle similar debts. There have also been other approvals in between, all targeted at addressing the same power sector liabilities.”
He questioned whether earlier approvals were implemented.
“This raises a fundamental question: were the previous approvals mere announcements without execution?”
Obi further criticised the worsening electricity situation across the country, referencing campaign promises made by President Bola Ahmed Tinubu during the 2023 elections.
“During the 2023 campaign, President Bola Ahmed Tinubu made a clear promise: that if he failed to deliver stable electricity, Nigerians should not re-elect him. Today, the reality is that power supply has worsened, to the extent that there are even discussions about disconnecting the Presidential Villa from the national grid.”
He added that repeated announcements without visible outcomes raise concerns about policy effectiveness.
“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress.”
Obi noted that the repeated debt approvals raise questions about governance and accountability.
“Now, again, we are confronted with another ₦3.3 trillion approval to settle power sector debts.”
According to him, much of the debt accumulated during successive administrations.
“These debts were largely accumulated under successive administrations of the All Progressives Congress between 2015 and 2025. This raises serious concerns about accountability, transparency, and effectiveness in public financial management.”
Obi also pointed out that government institutions contribute to the debt burden.
“It is important to note that government institutions and agencies, including the Presidential Villa owe a significant portion of these debts. Year after year, budgets were made and funds appropriated. Why then were these obligations not settled when due?”
He further questioned the funding source for the latest payment.
“And from what source will this new payment be made? Are we resorting once more to borrowing to service inefficiencies?”
Obi listed several unresolved questions regarding the power sector debt.
“Key questions remain unanswered: How did the debt accrue? What is the actual total debt in the power sector? Which components of the debts are due to operators’ inefficiency and should be borne by them? Why have previous approvals not translated into tangible improvements? Who are the real beneficiaries of these repeated payments?”
He also queried whether the latest approval overlaps with earlier interventions.
“Is the ₦3.3 trillion approved on April 6, 2026, the same as the ₦3.3 trillion approved in May 2024, and how does it relate to the ₦4 trillion bond approved in July 2024?”
The former Anambra State governor called for comprehensive reforms in the sector, urging authorities to prioritise transparency and accountability.
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms.”
He warned that failure to address the root issues would prolong the country’s electricity challenges.
“Until we do so, we will remain trapped in a cycle of debt and darkness.”
Obi concluded by expressing optimism that the country could still overcome its challenges with proper leadership.
“But with discipline, accountability, and the right leadership, a new Nigeria is still possible. -PO”